Quarterly earnings is center of attraction in stock markets. In this period, you need to look some hidden secrets to determine stock moves after results. It will help you to control your nervousness during earnings seasons.
But, it will also help you to make positions in the right direction at the right time. Once your positions are set in this big quarterly game, you can successfully achieve your targets in share trading.
Smart investors & traders are often interested to know about these key secrets to cut their dependency on stock analysts. It can also help them to avoid making positions depending on herd mentality. Here are 10 key factors or secrets to determine stock movements after quarterly results:
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(1) Overall Market Trends
It is one of the most tricky & hidden secrets to determine stock moves after results. Share markets are considered to be highly unpredictable in nature. It is particularly true for intraday moves.
But, you can easily & quickly determine the overall market trends. You just need to look at the weekly or monthly chart pattern to determine its overall direction.
If markets are in bullish trend then traders & investors are much likely to forgive an earnings miss. They can even be more rewarding for upbeat quarterly earnings.
On the other hand, if markets are in bearish trend then they are likely to penalize an earning miss. They can even ignore for upbeat quarterly earnings.
Thus, you should be smarter enough to follow current trend of broader markets. However, you should not forget to analyze prevailing trend of entire sector as well as individual stock.
- Stock Moves After Results: Shutterstock